Solar Companies Say Trade War With China Bad for US Industry

Charles W. Thurston

Members of the Coalition for
Affordable Solar Energy (CASE) railed against the impending
"trade war," arguing that the steep price drop in imported Chinese
photovoltaic modules was good for "98 percent" of U.S. solar
industry jobs. "We are growing U.S. solar jobs and this trade case
will undermine all the advances we have made in the U.S. solar
industry," said one CASE member.

Holding a press conference Thursday morning in Washington after
testimony was heard Wednesday by the U.S. International Trade
Commission (ITC) about the alleged dumping of Chinese modules in
the United States, CASE member Kevin Lapidus, senior vice
president for legal and government affairs at SunEdison, a
division of MEMC Electronic Materials (WFR),
said, "This case is not good for U.S. policy. SolarWorld (SRWRF),
a German company, is using the U.S. legal system to compensate for
its own business mistakes. It has triggered a global trade war
that has mushroomed beyond the United States."

Hoyle Kim, general counsel for GT Advanced Technologies (GTAT),
went further in his rejection of the dumping charges as bad for
the U.S. solar industry: "I strongly feel that this anti-dumping
case is a horrible incidence in the legal process intended to
protect American competitiveness. Trade barriers will not improve
the solar industry and the tariff exercise is counter-productive.
The timing of the situation is a pity because of the tremendous
technological progress (that has been seen in this country) in
increased efficiency and reduced costs."

Francine Sullivan, the vice president and legal counsel or REC
Silicon (RNWEF),
observed, "If the Commerce Department does uphold tariffs, it will
increase the cost of solar in the United States. Protectionism is
bad for the U.S. solar industry." She added that, "If solar growth
is left on its own, the Chinese module capacity -- and more --
will be required; solar is a global market."

George Hershman, vice president of San Francisco-based Swinerton
Renewable Energy, a utility-oriented developer, echoed the group
sentiment, saying, "There are a number of solar projects on hold
now, as this issue gets resolved. Uncertainty and time drive up
costs, so we are fighting a race against lower cost solar."

Lapidus noted that while the European solar industry -- which
also is considering Chinese dumping charges -- may be slowing,
growth is rampant in several other parts of the world. "Many new
countries are coming on line as solar markets, like Japan and
Saudi Arabia, and regions like Southeast Asia and South America
also are very good markets for solar."

The ITC will determine in early November whether U.S.
manufacturers have been harmed by Chinese imports. If the ITC does
determine injury has occurred, preliminary tariffs imposed by the
U.S. Commerce Department in May, ranging from 30 percent to 250
percent, would continue. Commerce is expected to issue a final
ruling by October 10. The dumping complaint was initiated by
SolarWorld, and has been joined by several other U.S.
manufacturers.

In retaliation, China in May filed a complaint against U.S.
subsidies that affected over $7 billion worth of Chinese products.

Charles W. Thurston is a journalist who specializes in
renewable energy, from finance to technological processes. He
has been active in the industry for over 25 years, living and
working in locations ranging from Brazil to Papua New Guinea.
This article was originally published on RenewableEnergyWorld.com and was republished with permission.